Take-out Commitment
A written agreement from a Lender to provide permanent financing following construction of a planned project. The takeout commitment usually contains specific conditions for occupancy and income, such as a certificate of occupancy and/or a certain percentage of unit sales or leases in place and paying rent. Most construction lenders require takeout financing prior to beginning construction.
Tax and Insurance (Reserve) Escrow
An account required by a mortgage lender and established at the time of closing to fund annual property tax assessments and hazard insurance premiums for the mortgaged property. Funded through monthly contributions and maintained by the Lender.
Tenant Improvement (Reserve) Escrow
An account required by a mortgage lender and established at the time of closing for the purpose of reserving funds estimated to be necessary to improve retail and office space. Funded through monthly contributions and maintained by the Lender.
Third Party Reports
Reports required by a mortgage lender prior to funding a loan that include MAI Appraisal, Phase I Environmental and Physical Condition reports.
Title Insurance
An insurance policy that protects the holder from loss sustained by defects in the title.
Triple-Net Lease
A commercial lease in which the tenant is required to pay all operating expenses of the property and the landlord receives a net rent amount each month.
Trust Deed
A conveyance of real estate to a third party to be held for the benefit of another. Commonly used in some states in place of mortgages that conditionally convey title to the lender.
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